oversight

Examination of Financial Statements of Federal Prison Industries, Inc., Fiscal Year 1970

Published by the Government Accountability Office on 1971-01-19.

Below is a raw (and likely hideous) rendition of the original report. (PDF)

REPORT           TO THE CONGRESS
                           lllllllillllllllllllllilllll
                                         LM095745




Examination Of
Financial Statements Of
          rison Industries, Inc,
 iscal Year 1970         8-774826




Department of Justice




BY THE COMPTROLLER   GENERAL
OF THE UNITED STATES
                        COMPTROLLER      GENERAL       OF     THE      UNITED       STATES
                                       WASHINGTON,         D.C.     20548




         B- 114826




        To the     President      of the Senate      and the
    c
        Speaker      of the    House    of Representatives

                 The accompanying         report    presents      the results       of the
        examination      by the General       Accounting       Office    of the finan-
    I   cial statements       of the Federal      Prison     Industries,      Inc.,    De-                          -:$5.
/       partment     of Justice,     for the fiscal     year ended       June 30, 1970.
        The examination         was made pursuant          to the Government            Cor-
        poration    Control      Act (31 U.S.C.     841).

                  Copies   of this    report         are     being          sent     to the    Director,
        Office     of Management         and       Budget,           and to the          Attorney        General.




                                                     Comptroller                   General
                                                     of the United                 States
COJPTROLLERGENEz%L'S                         EXAlvlINAl-IONOF FINANCIAL STATEMENTSOF
REPORTTO THE CONGRESS                        FEDEM PRISON INDUSTRIES, INC., FISCAL
                                             YEAR 1970
                                             Department of Justice    B-114826


DIGEST
------

WHYTHE EXAMINATION WASMADE

         The Government Corporation Control Act requires the Comptroller
  /      General to make an annual audit of the Federal Prison Industries,
         Inc. (the corporation),   and to submit a report thereon directly to
         the Congress.


FINDINGS AND CONCLUSIONS

         In the opinion of the General Accounting Office (C&0), the financial
         statements included in this report (schs. 1 through 3), which were
         prepared by the corporation,    present fairly   the financial position
         of the corporation at June 30, 1970, and the results of its opera-
         tions and the sources and application     of its funds for the year then
         ended, in conformity with generally accepted accounting principles
         applied on a basis consistent with that of the preceding year and
         with applicable   Federal laws.

         The corporation conducts industrial         operations in Federal penal and
         correctional    institutions     and in the military   disciplinary     barracks
         at Fort Leavenworth, Kansas> for the purpose of providing employment
         for physically     fit inmates.      The nature of the industrial      operations
         established    in the institutions      is determined on the basis of the
         type of work that will give the inmates an opportunity              to acquire
         knowledge and skill       in trades and occupations which will enable them
         to earn a livelihood        upon their release and, at the same time, keep
         to a minimum the competition with private industry*

         The corporation also conducts a vocational    training  program for
         qualified  inmates in connection with the institutional    industrial
         activities   and operates a placement service to assist inmates in ob-
         taining employment upon their release.

         The corporation's   fiscal year 1970 sales to Government agencies
         totaled about $52.3 million,      or about $4.8 million  more than the
         preceding year.    Although its 1970 profit     of $6.3 million was less
         than the profit   of $7.3 million     in fiscal year 1959, the corporation
         paid a dividend of $5 million      into the U.S. Treasury during fiscal
         year 1970, the same amount as paid in the preceding year.         (See pe 5.)

Tear   Sheet


                                                             JAH.19,1971
    Materials    and supplies     inventories     at June 30, 1970, totaled about
    $11.5 million,      or $3 million      more than at June 30, 1969.     This increase
    contributed     substantially     in the reduction     of funds on deposit  with    the
    U.S. Treasury.        The cost of construction      in process  at June 30, 1970,
    was about $4.2 million,         or $1,5 million    more than at June 30, 1969.
    (See pp. 5 and 6.)


RECOPMENDATIONS
              OR SUGGESTIONS

    None.


AGENCYACTIONS AND UNRESOLVEDISSUES

    None.


MATTERS FOR CONSIDERATIONBY THE CONGRESS

    This report        is submitted       to the Congress        as required     by the Government
    Corporation       Control     Act to disclose       the results        of the annual      examination
    of the corporation's           financial     statements       and such other      information
    deemed necessary          to keep the Congress          informed     of the operations        and fi-
    nancial     condition       of the corporation.
                           Contents
                                                           Page

DIGEST                                                       1

GENERAL COKMENTS                                             3

MANAGEMENT                                                   4

OPERATIONS                                                   5

SCOPE OF EXAMINATION                                         7

OPINION OF FINANCIAL STATEMENTS                              7


FINANCIAL STATEMENTS

Schedule

   1       Statement of financial    condition,
              June 30, 1970 and 1969                       11
   2       Statement of income and expense, fiscal
             years ended June 30, 1970 and 1969            12
   3       Statement of sources and application       of
              funds, fiscal   year ended June 30, 1970     13
   4       Statement of cost of goods and services
              sold, fiscal  years ended June 30, 1970
             and 1969                                      14
   5       Statekent   of vocational  training    and
             placement expenses, fiscal      years ended
             June 30, 1970 and 1969                        15
APPENDIX

       I   Statement of sales by industry, fiscal
             years ended June 30, 1970 and 1969            19
COMPTROLLER
          GENERAL'S                      EXAMINATION OF FINANCIAL STATEMENTSOF
REPORT
     TO THE CONGRESS                     FEDERAL PRISON INDUSTRIES, INC., FISCAL
                                         YEAR 1970
                                         Department of Justice  B-114826


DIGEST
------

WHYTHEEXAMINATION
                WASMADE
    The Government Corporation Control Act requires the Comptroller
    General to make an annual audit of the Federal Prison Industries,
    Inc. (the corporation),   and to submit a report thereon directly to
    the Congress.


FINDINGSANDCONCLUSIONS
    In the opinion of the General Accounting Office (GAO), the financial
    statements included in this report (schs. 1 through 3), which were
    prepared by the corporation,     present fairly   the financial position
    of the corporation    at June 30, 1970, and the results of its opera-
    tions and the sources and application      of its funds for the year then
    ended, in conformity with generally accepted accounting principles
    applied on a basis consistent with that of the preceding year and
    with applicable    Federal laws.

    The corporation       conducts industrial    operations in Federal penal and
    correctional     institutions     and in the military   disciplinary     barracks
    at Fort Leavenworth, Kansas, for the purpose of providing employment
    for physically      fit inmates,      The nature of the industrial      operations
    established    in the institutions       is determined on the basis of the
    type of work that will give the inmates an opportunity               to acquire
    knowledge and skill        in trades and occupations which will enable them
    to earn a livelihood         upon their release and, at the same time, keep
    to a minimum the competition with private industry.

    The corporation   also conducts a vocational  training  program for
    qualified  inmates in connection with the institutional     industrial
    activities   and operates a placement service to assist inmates in ob-
    taining employment upon their release.

    The corporation's   fiscal year 1970 sales to Government agencies
    totaled about $52.3 million,      or about $4.8 million  more than the
    preceding year.    Although its 1970 profit     of $6.3 million was less
    than the profit   of $7.3 million     in fiscal year 1969, the corporation
    paid a dividend of $5 million      into the U.S. Treasury during fiscal
    year 1970, the same amount as paid in the preceding year.         (See p. 5.)
    Materials  and supplies     inventories   at June 30, 1970, totaled about
   $11.5 million,    or $3 million     more than at June 30, 1969. This increase
   contributed    substantially     in the reduction of funds on deposit with the
   U.S. Treasury.     The cost of construction       in process at June 30, 1970,
   was about   $4.2 million,     or $1.5 million    more than at June 30, 1969.
   (See pp. 5 and 6.)


RECOMMENDATIONS
            ORSUGGESTIONS
    None.


AGENCY
     ACTIONSANDUNRESOLVED
                       ISSUES
    None.


MATTERS
      FORCONSIDERATION
                    BY THECONGRESS
    This  report is submitted to the Congress as required by the Government
    Corporation Control Act to disclose the results of the annual examination
    of the corporation's  financial statements and such other information
    deemed necessary to keep the Congress informed of the operations and fi-
    nancial condition of the corporation.




                                     2
                           GENERAECOMMENTS

       The General Accounting Office has made an examination
of the financial      statements of the Federal Prison Indus-
tries,    Inc., for the fiscal     year ended June 30, 1970.      The
scope of the examination        is described on page 7.      The cor-
poration,     which is a wholly owned Government corporation
created pursuant to the act of June 23, 1934 (48 Stat.
1211; 18 U.S.C. 41211, functions         within  the Bepartment of
Justice under the general direction          and supervision   of the
Attorney     General.

        The corporation    conducts industrial          operations    in
Federal penal and correctional            institutions     and in the mil-
itary disciplinary       barracks at Fort Leavenworth,             Kansas,
for the purpose of providing           employment for physically           fit
inmates.     These operations       are designed to give the inmates
an opportunity      to acquire knowledge and skill             in trades and
occupations     that will enable them to earn a livelihood                upon
their release.        The nature of the industrial           operations
established     in the institutions         is determined on the basis
of the type of work that will           furnish      the most appropriate
training    and, at the same time, keep to a minimum the com-
petition    with private     industry.        The number of inmates em-
ployed in the industries         during fiscal        year 1970 averaged
4,796.

       Under the act which created the corporation,      Government
agencies are required    to purchase,   at prices not to exceed
current market prices,     such products of the industries      as
meet their requirements     and as may be available.     The cor-
poration's   board of directors    has established   the policy
that prices shall not be materially      below current market
price.

       The corporation     also conducts a vocational     training
program for qualified        inmates in connection with the insti-
tutional   industrial    activities    and operates a placement
service to assist      inmates in obtaining     employment upon their
release.     During fiscal     year 1970, 5,242 inmates were en-
rolled   in 122 groups for training       in agriculture,    industry,
trades,   and other special subjects        and 3,030 inmates com-
pleted the courses.
                               MANAGEMENT

      The operating   policies  of the Federal Frison Industries,
Inc., are prescribed     by a board of six directors  appointed
by the President    of the United States to serve for indefi-
nite terms without    compensation.   At June 30, 1970, the
board members were:

               Name                                   Representing

Sanford Bates, consultant      in       Attorney       General   of the
   public administration                   United      States
William E. Morgan, president
   emeritus,    Colorado State
   University                           Agriculture
George Meany, president,
   AFL-CIO                              Labor
James L. Palmer, member,
  board of directors,     Mar-
   shall Field Company                  Retailers       and consumers
John Marshall Briley,
   lawyer-industrialist                 Secretary       of Defense
Berry N. Beaman, industri-
   alist                                Industry

      The officers     of the corporation       at June 30, 1970, were:

Sanford Bates                           President
James L. Palmer                         Vice Fresident
Norman A. Carlson                       Commissioner of Industries
John T. Willingham,      Jr.            Associate Commissioner of
                                           Industries
William   E. 'Zachem                    Secretary/Deputy Associate
                                           Commissioner

The President     and the Vice President   are members of, and are
selected by, the board of directors.        Under the bylaws, the
Director    of the Bureau of Prisons,    Department of Justice,
is the Commissioner of Industries       and the acting executive
officer    of the corporation.    The Associate Commissioner of
Industries    and the Secretary/Deputy    Associate  Commissioner
serve as the chief operating      and administrative   officers
of the corporation.


                                    4
                               OPERATIONS

       During fiscal     year 1970,     sales to Government agencies
totaled    about $52.3 million,       or $4.8 million  more than the
preceding year.        Sales by 20    of the 41 manufacturing   and
processing    industries     and by   eight of the 11 servicing    units
increased about $8.7 million.            Sales by the remaining  in-
dustries    and servicing     units   decreased by about $3.9 million.

      We were informed by corporation          officials       that   the in-
crease of $8.7 million  was attributable            principally       to in-
creased sales of about:

      --$3-l   million    at the electronics    shop, McNeil Island,
         Washington,     due to filling    back orders that had re-
         sulted from     difficulties   in acquiring   materials.

      --$1.9 million     at the textile   mill and the canvas shop,
         Atlanta,   Georgia,   due to furnishing  pieces of cut and
         printed   cloth for mail sacks to the Post Office     De-
         partment.

      --$1.2 million    at the electronics   shop, Danbury, Con-
         necticut,   due to increased demand for electronic
         components and cable assemblies by the Defense Gen-
         eral Supply Center,    Richmond, Virginia.

        Of the decrease in sales of $3.9 million,       about $1.7
million    resulted  from a reduction    in orders for brushes,
metal beds, and metal shelving        and about $0.9 million    re-
sulted from a reduction     in the sales prices     for blankets    and
duffel    bags.

        The corporation's   profit for fiscal   year 1970 was $6.3
million    compared with a profit    of $7.3 million   for the pre-
ceding year.      However, the board declared,     and the corpora-
tion paid, a dividend of $5 million       into the U.S. Treasury
during fiscal     year 1970, the same amount as paid in the pre-
ceding year.

       Materials    and supplies      inventories   at June 30, 1970,
totaled   about    $11.5 million,       an increase of about $3 million
                        SCOPE OF EXAMINATION

       Our examination     of the financial      statements   of Federal
Prison. Industries,     Inc.,   for fiscal    year 1970 was made in
accordance with generally         accepted auditing     standards and
included such tests of the accounting           records and financial
transactions     and such other auditing       procedures    as we con-
sidered necessary in view of the nature and volume of the
transactions     and the effectiveness      of the internal      controls,
including    the internal     audit functions.

       Our examinations   at the various institutions         are made
on a cyclical    basis.   The fiscal     year 1970 examinations
were made at the institutions        in Danbury;Connecticut;
McNeil Island,    Washington;   Seagoville,      Texas; Tallahassee,
Florida;   and Terminal Island,      California,    and at the central
office   in Washington, D.C.

                OPINION OF FINANCIAL STATEMENTS

       In our opinion,    the accompanying financial      statements
(schs. 1, 2, and 3) present fairly        the financial    position  of
the Federal Prison Industries,      Inc.,    at June 30, 1970, and
the results    of its operations   and the sources and applica-
tion of its funds for the year then ended, in conformity
with generally    accepted accounting     principles    applied on a
basis consistent     with that of the preceding year and with
applicable   Federal laws.




                                     7
,d
SmEDULE 2


                                    FEDERAL                        PRISON                 INDUSTRIES,                       I N C.


                                                                  STAUXZtX          OF INCPNX AYD EXPENSE

                                                       FISCAL           YE,%   E%TED JiihE 30,     1970 AND 1969


                                                                                                                                           sncrease    or
                                                                                                            -1970             1969
                                                                                                                              -            drcrease(-1
     TOTAL SALES OF FROL?;:CTS A%                        SERVICES                                       $58,355,6X       $52,929,204       $5,426,417
     LESS SALES BETKEN                      IFDLSTRIES                                                    6,059,838         5,427,943          631,895
     SALES TO GOVERX?~NT AGENCIES                                                                        52,295,7%3       47,501,261        4.794,522

    COST OF COWi               AMI SER';!CES           SOLil (schec!cle             4)                   40,459,567       35-407,890        5,051,677

    GROSS PROFIT                                                                                         11.836.216       12,093,371         -257,155

     Add:
            Hiscellaneous               sales     income,         net                                        114,066          114,734
            Sundry incme.                net                                                                  81,544            53,298          28,246

                                                                                                         12,031,8X        12,261,403         -229,577


                                                                                                              12,292            61,271         -48,979
                                                                                                             553,282          497,721            55,561
                                                                                                              75,648          138,613          -62.965
                                                                                                              26;842            26,803                   39
                                                                                                              10,115                             10,115
                                                                                                             232,116            35,578         196,538
                                                                                                                2 ,P?4          33,&79         -36,765

                                                                                                             912,589          799,055          113,524

            Sales      expense:
                    (Xttgoinb   frcictt                                                                       54,152            45,496            7,656
                    Shippin.                                                                                 232,335          1t2,079           70,256
                    Catalog,    sxplcs             ano sunerim                                                10,694           10,741                -47

                                                                                                             297,181          219,316           77,865

            Administrative    expense:
                 Salaries                                                                                   671.279           557,881          113,398
                 TlYJel                                                                                       55.556           30,757           16,799
                 Audit expense'                                                                               35,000           35,000
                 Rent for Vashir.gton                    office                                               23,936           24,064             -128
                    Other                                                                                     95,437           74,603           20,834

                               1imit:tion          set t; t?le Co-..gress:
                                  Cl470         - 5382.000)                                                 861,208           730,.305         150,903
                                    i1969       - s7801003j
                    Depreciation             on zchinery            and eqlpmnt                                2.804             2;889               -85
                    Depreciation             on build:nga           ard ic;provezents                          1,511                              1,511
                            Total     adzinistrztive               expense                                  885,523           733,194          152,329
            Incentive          awards        to civilians                                                     lo,?05      2,955                        850
                                                                                                          2,106,098        1,761,530           344,568
                                                                                                          9,925.728       10,499,gi3         -574,145
   L.C.*:

            Accident      ccmpexation                                                                       102,872           127.758         -24.686
            YocatLoml        training       and plscement    expenses                    (schcd-
                  ule 5)                                                                                  3,021.911        2,594,x3            427,548
            t!!ritoriour.      ca~prnsation       to ircmtcs                                                 546,568          497.023           49,545

                                                                                                          3.671,351        3,219.144          452,207
   kET PROFIT           TO RETA::.ED             ISCWE      (schedule          1)                   $&254_,377           S-7,280,729     -$1,026,352




                                                                                         12
                                                     SCHF,DTULE
                                                              3


                 FEDER-ALPRISON INDUSTRIES, INC.


        STATEMENTOF SOURCESAND APPLICATION OF FUNDS

                 FISCAL YEAR ENDED JUNF.!30, 1970


FUNDS PROVIDED:
    Sales of products and services                  $52,295,783
   Miscellaneous    sales                             Z/286,370
    Sundry income--current  year                      1,048,080
   Materials   and supplies donated by
      other Government agencies                         304,296
    Sundry income earned in prior years                      935
    Decrease in funds with U.S. Trea-
      sury                                            3,571,650

         Total   funds provided                     $59,507,114


FUNDS APPLIED:
   Costs of goods and services          sold,
      less depreciation        and amortization
      expense                                       $39,231,229
   Cost of miscellaneous          sales               2,172,303
   Purchase of machinery and equipment                1,902,044
   Purchase of buildings         and improve-
      ments                                           2,181,283
   Dividends to U.S. Treasury                         5,000,000
   Accident compensation                                 102,872
    Inmate compensation for meritorious
      or outstanding       service                      546,568
   Vocational     training     and placement
      expense, less depreciation                      2,719,843
   Operating expenses, less expenses
      not affecting      funds                        1,432,809
    Operating expenses incurred         in prior
      years                                               10,802
   Increase in other assets                           4.207.361

         Total   funds applied                      $59,507,114




                                   13
                  FEDERAL               PRlSON                  INDUSTRIES,                       I N C.

                             STATEMENT OF COST OF GOODS AND SERVICES SOLD

                              FISCAL YMRS        EhQED   JUNE   30,   1970 MD 1969

                                                                                                            Increase or
                                                                             1970               1969        decrease(-)

MATERIALS USED                                                        $27,514,171         $23,917,737       $3,596,434

LABOR, DIWCT INMATE                                                       2.424.996          2.207.458           217.538

MANUFACTURINGEXPENSES:
    Salaries--civilian                                                    5,522,332          4,637,562          884,770
   Labor, indirect--inmate                                                   623,665            541,045           82,620
   Light,     heat, power, and water                                         800,278            790,400             9,878
   Travel                                                                      91,225             59.178          32,047
   Rents and royalties                                                         58,240             46,108          12,140
   Amortization         of deferred    e.xpense                                31,591             61,447        -29,856
   Telephone and telegraph                                                     22,693             19,758            2,935
   Depreciation:
          Machinery and equipment                                            782,192            684,123            98,069
          Buildings       and improvements                                   345,403            337,058             8,345
   Factory supplies                                                       1,275,864          1,174,824           101,040
   Loss and damaged goods                                                      56,363             48,930             7,433
    Building      repairs    and maintenance                                 103,847              90,309          13,538
   Machine repair parts                                                      6751762            551,937          123,825
   Freight,       express, and parcel post                                     73,201             69,407            3,794
   Vehicle      operation                                                      32,737             27,922            4,815
    Minor equipment and repairs                                              366.472            295,388            71,084
   Accident compensation--lost             time due to injury                    3;8OO              3,953             -153
    Special clothing                                                           37,485             38,167              -682
   Office supplies,          printing,    and stationery                       64,299             56,819            7,480
   Experimental         expense                                                19,189               5,267         13,922
   Publications                                                                  5,014             3,912            1,102
    Special meals                                                              13,282             11.096            2,186
   Packing and storing                                                         87,332             71;733          15,599
    Grading and testing                                                        10,759               7,317           3,442
    Expenses reclassified--not            applicable     to manu-
      facturing                                                            -204,344           -110,832           -93,512
   Commercial labor and services                                                 2,940          173,170        -170,230
    Social security                                                                 912             1,135             -223
   Life insurance                                                              22,537             20,108             2,429
   Health insurance                                                            43,129            43,047                    82
   Retirement                                                                353,949            290,847            63,102

               Total   manufacturing      expenses                      11.322,156         10,051,135        1,271,021
               Total   manufacturing      charges                       41,261,323         36,176,330        5,084,993

Add:
    Work in process       inventory,    beginning                         2,538,596          2,083,755           454.841
Deduct:
    Work in process       inventory,    ending                            2,893.973          2,538,596           355,377

               Cost of goods manufactured                               40,905,946         35,721,489        5,184,457
Add:
    Finished   goods inventory,   beginning                               2,620,419          2,727,417         -106,998
Deduct:
    Finished   goods inventory,   ending                                  2,610,589          2,620,419            -9,830
    Costs reclassified    as assets or other             expenses            456,209            420,597           35,612
COST OF GOODSAND SERVICES SOLD (schedule                 2)            $40.459.567        $35,407.890       $5.051.677
                                                                        SCHEDULE5

                       FEDERAL PRISON INDUSTRIES, INC.




       STATEMENTOF VOCATIONAL TRAINING AND PLACEMENTEXPENSES

                  FISCAL YEARS ENDED JUNE 30, 1970 AND 1969




                                                                         Increase or
                                                1970         1969        decrease(-)

Personnel compensation                   $1,931,569       $1,729,168      $202,401
Personnel benefits                           138,966          122,401       16,565
Travel and transportation           of
   persons                                       89,490       57,873        31,617
Transportation     of things                     12,049        5,488         6,561
Rent, communications,       utilities            78,949       60,536        18,413
Printing    and reproduction                     51,435       44,595         6,840
Other services                                   80,593       47,101        33,492
Supplies and materials                          336,792      310,960        25,832
           Total expenses subject
             to limitation   set by
             the Congress:                    2,719,843    2,378,122       341,721
                (1970, $2,850,000)
                (1969, $2,457,000)

Depreciation:
    Machinery      and equipment                186,959      121,311        65,648
    Buildings      and improvements             115,109       94,930        20,179
          Total     (schedule    2)      $3,021,911       $2,594,363      $427,548




                                         15
APPENDIX




           . .--.
                                                                                                                                                                                        APPENDIX I


                                                        FEDERAL                            PRISON                         INDUSTRIES,                                I N c.


                                                                                           STATTLLCII3IT07 SALES BY JWUJSTKY

                                                                                FISCAL         ‘if-AX5 CXED             JL’NE 3c),     1970    AND 1969


                                                                                                                                                                                                     Average    number
                                                                                                                                                      Scdrs                   Increase          or     of inmtes     in
                                   Industq                                                               Lncntion                           1970
                                                                                                                                           __           --1469 _              _drcrcnse(-)           industry,     1970

W~~~ACI-URING      Pm p~OCE51tiG:
    Br0Om                                                                                      El Rem                               s 1,045,279           S       973,196     S      72,083                     78
    Brush                                                                                      La Tuna                                   997,904               1,040,238          -42,334                       70
      Do.                                                                                      Leavernorth                            3,007,645                3.686.983        -679 I 334                     152
      Do.                                                                                      Springfield                               217,522                  297,619         -80,097                       19
    Cable (note       a)                                                                       Petersburg                                 17,160                                     17,160
    c%nvns specialty                                                                           Atlanta                               1@,054,8C6                9.141.219           913,647                     24:
      Do.                                                                                      Terre    Haute                         1,416,023                l,al2,877        -396,854                       100
    Clothing                                                                                   Fort Leavenworth                          212,959                   217,650          -4,691                      69
      lb.                                                                                      Leavenucrch                            1,292,817                1,004,373           208,444                     124
      D3.                                                                                      Lewisburg                                 514,637                   666,397      -151,760                        86
      Do.                                                                                      L0ZlpCC                                   136,765                   280,780      -143,995                        30
    airy                                                                                       La Tuna                                   200,318                   199,831               487
    Plfctronics                                                                                Hckil       Island                     5,236,493                2,133,671       3,102,822                       18104
      Do.                                                                                       hhry                                  2,353,818                1,153,595       1,200,222                       104
    Electronic      cable                                                                      Lompo:                                    692,576                   451,973         240,603                      69
    Feather     products                                                                       Texarkana                                 241,511                   447,466      -205,955                        19
    Furniture,      mod                                                                        LZ?.%%,i;Clrth                            793,387                   819,595        -29,208                       96
      Do. (note     b)                                                                         TCGlrkaIla
    furniture,      wood and fiber     (note                               c)                  Ashland                                     2;,092                 2:9,316         -19;,424                       6
    Furniture,      wood and refinishing                                                       !4cSeil     Island                        480,841                  L44,450              36,391                 137
    Furniture,      Cllstol                                                                    Allenwod                                  443.124                  284,001            159.123
    Furniture.      metal                                                                      Lejisburg                              3,036,318                3,040,487              -4.169                  2:
         Do.                                                                                   Marion                                    363,101                  156,285            206,816                    76
        earnent                                                                                Alderson                                  642,271                  521,550            320,721                  115
        Clove                                                                                   DanburY                                  320,179                  517,427         -197,248                      92
           Do.                                                                                 Smdstbne                                  278,262                  335,153           -56,691                     56
        Instructional        system   (note                        b)                          Lompoc                                                                                                             1
        Mschine,      die,   and tool                                                           El Ken0                               1,747,627                2,117,849        -370     222                  lx)
        Hattress                                                                               Atlanta                                1,675,86?                1,581,591             94:2m
        tietal    eauinncnt                                                                    Trrrinal        Island                    976,b3?               1,219,bOb        -271,967                      i%
        Wetal     s&&lty                                                                       Nilm                                      83~6,839              1,273,655        -436,886                        68
        Parachute                                                                              Springfield                               154,676                  190,444         -35,768                        8
        Printing                                                                               Lompoc                                    408,654                  375,109            33,745
          03.                                                                                  tkrion                                    392,837                  337,261            55,576                     2:
          Do.                                                                                   Sandstone                                295,521                  236,255            59,266                     33
        PIestics                                                                               Terre     Haute                           336,819                  363,205         -26,386
        Sign (note       d)                                                                    Atlanta                                     87,391                                    87,391                     2
          Do.                                                                                  &Neil       Island                        499,014                  5o4,15a           -5,144                      46
        shoe                                                                                   Leavenworth                            5,330,lOb                5,040,028           330,078
        Textile,      cotton                                                                   Atlanta                                6,433,566                4,820,377       1,613,189                      zi:
        Textile,      voolen                                                                   Terre     Haute                        2,189.X6                 2,680,646        -491,330                   251

                 Total      manufacturing                  and      processing                                                       55,623,736               50,615,357          5,008,379                4,317

smcllie:
      Automatic       data processing                                                          Alderson                                    160,224                 93,422             66,802                    33
       Furniture      repair     and refinishing                                               La Tuna                                     374,804                443,353           -68,469
         Do.                                                                                                                               327,897                254,768             73,129                    ::
         Do.                                                                                   Pet&burg                                    186,778                145,311             41,467                    39
         Do.                                                                                   Seagoville                                  112,661                116,019             -3,358                    26
         Do.                                                                                   Tallahassee                                 276,889                169,849           107,040                     44
         Da.                                                                                   Teminal     Island                          557,027                427,291           129,736
       Keypunch                                                                                        do.                                   81,324                 59,760             21,564                   E
       Rozdwheel      rebuilding                                                               Tcxarkana                                   279,981                236,544             43,437                    38
      fire     reconditioning                                                                  Petsrsburg                                  216,324                201,489             14,835
         Do.                                                                                   TcxEXliana                                  157,896                166,041             -8.145                    E

                 Total       servicing                                                                                                2.731.885                2.313,847            418,038                   479

                 Total                                                                                                               58.355.621               52,92?,204       5,42h,417                   4,796
                          less     seles       betbieen            industries                                                         6.059.838                5,427,943            631,895

                 Total       sales          to Ckwemnent                ngmcies                                                     $~~:~78~             $47,5$261 -          S4,79f+,572
%ndustry            established               in    fiscal          year        1970.
b
    Industries            established              in     but     no production                during          fiscal       yeor     1970.

=hhWy               -as     discontinued                  during        fiscal          yeer        1970.
d
    Industry        establisllfd              in    but      no     production             during           fi~col       ycor      19bS.




U.S.      GAO       Wash..           D.C.